What does the financial services industry do for us? Answer: Zilch.

What does the financial services industry do for us? Answer: Zilch.

“One expert, formerly an investment banker who lived through the good times and got out of the City before the decline, says: ‘The financial services business has failed the three basic tests – fund management returns are falling, mergers and acquisitions have been shown not to work, analysts’ forecasts nearly always turn out to be wrong. How can they claim to have added any value to the well-being of the nation after all that? It’s a bloody scandal.’ ” Frank Kane on Britain’s rip-off financial services industry.

Dave Winer disappeared from the Web for a few days and then returned with some enigmatic references to illness. Seems to be connected with smoking. He’s not telling — just hinting. That’s his privilege. Hope he’s all right. I’ve been reading him for years, and he’s wonderfully insightful about the Net and refreshingly humane about life.

Good interview with Larry Lessig by Reason magazine

Good interview with Larry Lessig by Reason magazine

Includes good succinct explanation of why intellectual property is different from other kinds of property:

“If you’re a lawyer, it’s OK to think of intellectual property as property, because we[base ‘]re trained to use the word property in a careful way. We don’t think of it as an absolute, perpetual right that can’t be trumped by anybody. We understand property rights are constantly limited by public-use exceptions and needs, and in that context we understand intellectual property to be a very particular, peculiar kind of property .. the only property constitutionally required to be for limited terms. It’s clearly established for a public purpose and is not a natural right.

The real problem is when people use it in the ordinary sense of the term property, which is “a thing that I have that nobody can take, forever, unless I give it to you.” By thinking of it as property, we have no resistance to the idea of certain great companies controlling “their” intellectual property forever. But if we instead use terms like monopoly to describe the control that companies like Disney have over art objects like Mickey Mouse, it’s harder to run naturally to the idea that you ought to have your monopoly right forever.

Another problem is the increasing ability of owners of intellectual property to control the actual use of that property. Before the network, if you bought a book, the First Sale doctrine made it impossible for the copyright owner to control what you did with it. Copyright law would not interfere with my ability to give you the book or copy a chapter or read the book a thousand times. All those things are completely within my control, partly because the law guarantees it, but also because the book producer couldn’t do anything about it even if he wanted.

As you move to the Internet, though, lots more control is possible. If you look in the permissions for an Adobe eBook, it has the power to control how many times you can print certain sections of the book, whether you can use technology to read the book aloud, whether you can cut and paste sections of the book. All these controls would not have existed without digital technology, because the cost of regulating those uses would have been too high.”

Also, very good on the way in which digital representations allow unparalleled extensions of IPRs:

“And now, if digital content has a built-in copy protection system, you aren’t allowed to interfere with it, even if the content isn’t protected by copyright laws. I have bought a number of eBooks, including Aristotle’s Politics. Aristotle[base ‘]s Politics, of course, was never copyrighted, but the Adobe eBook reader forbids me from printing any pages of the book because the permissions have been set to disable any printing. If I try to interfere with those permissions .. if I write a bit of code to disable the limitations that forbid me from printing Aristotle’s Politics from my Adobe eBook .. that would be circumventing an access technology, which under the Digital Millennium Copyright Act is a crime.”

He also tells the story of how the Stanford network police got it wrong about his use of Morpheus:

“I was giving a talk at the New America Foundation. Jack Valenti from the Motion Picture Association of America stood up and talked about how awful it was that Stanford allowed a Morpheus server to exist on its network, and what did I think of this obvious technology to enable stealing? I told him I had a Morpheus server running on my machine at work, which was delivering my own content, both audio and text versions of lectures I[base ‘]ve given. When I first made this available, the Stanford network police came in and pulled the plug on my server over the weekend because they thought I was engaging in “illegal acts.” But I wasn[base ‘]t engaging in illegal acts. It[base ‘]s completely legal for me to distribute content that I have the copyright over, and this technology makes it very easy to do that.

The idea that you would assume that all uses are illegal is an overreaction to what I think is a legitimate problem. I’m not in favor of copyright theft, I’m just opposed to shutting down all technologies merely because copyright theft may occur on them.”

New Mac software implements ‘discover and share’ protocol

New Mac software implements ‘discover and share’ protocol
Register report.

Jaguar, or “Jag-wire”* as Jobs pronounced it, includes new utilities and important changes under the hood. A new service called Rendezvous automatically discovers other Mac users and drops their shared playlists into iTunes’ Source panel. Jobs showed one Mac notebook streaming to another. Apple said it will contribute the discovery and federation mechanism – which offers similar functionality to the low level services of Sun’s JCP-controlled Jini, and Microsoft’s UPP – as an Internet open standard.

“You want computers to discover each other and just share stuff” said Jobs.

First empirical examination of Open Source projects?

First empirical examination of Open Source projects?

There’s a lot of myth and anecdote surrounding the Open Source phenomenon. In this First Monday article, Sandeep Krishnamurthy of the University of Washington reports an intriguing empirical study of the projects on SourceForge. Abstract:

“Starting with Eric Raymond’s groundbreaking work, “The Cathedral and the Bazaar”, open-source software (OSS) has commonly been regarded as work produced by a community of developers. Yet, given the nature of software programs, one also hears of developers with no lives that work very hard to achieve great product results. In this paper, I sought empirical evidence that would help us understand which is more common – the cave (i.e., lone producer) or the community. Based on a study of the top 100 mature products on Sourceforge, I find a few surprising things. First, most OSS programs are developed by individuals, rather than communities. The median number of developers in the 100 projects I looked at was 4 and the mode was 1 – numbers much lower than previous numbers reported for highly successful projects! Second, most OSS programs do not generate a lot of discussion. Third, products with more developers tend to be viewed and downloaded more often. Fourth, the number of developers associated with a project was positively correlated to the age of the project. Fifth, the larger the project, the smaller the percent of project administrators.”

My Observer column explaining why Osama bin Laden should get a knighthood for services to MI5. Basically by scaring legislators so that they swallow just about any intrusion into online privacy.

Useful resume of the Microsoft case

Useful resume of the Microsoft case

“In November, the Justice Department arrived at a consent decree with Microsoft.

Under the settlement, Microsoft agreed to enable computer makers to remove the desktop icons to several of the software programs that it includes in Windows, and to disclose more information to rival developers so that its own programs would not benefit from a superior interaction with the operating system. Nine states who originally joined the Justice Department’s lawsuit against Microsoft also signed on to the settlement.

But nine other states, led by California and Iowa, argue that the settlement is ineffective. They want Judge Kollar-Kotelly to order Microsoft to sell a stripped-down version of Windows that would allow computer makers actually to substitute rival programs for those produced by Microsoft, rather than simply removing the icons.

They are also pushing for broader disclosure provisions, without the exceptions included in the proposed settlement, to ensure that Microsoft shares information about Windows with rivals.

Other crucial provisions in the states’ proposal include forcing Microsoft to give away the source code for its Internet Explorer browser, and to auction its popular Office software to developers who could create versions for the Linux operating system.” [ more…]